The reasons why this is not a Shares for rights scheme are because
The employer and the individual share responsibility to meet these conditions.
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1. The individual and the company must both agree that the individual will be an employee shareholder.
2. The employer must give the individual fully paid up shares in the employer’s company or employer’s parent company, and they must be worth at least £2,000.
3. The individual must not pay for the shares in any way.
4. The employer must give the individual a written statement of the particulars of the status of employee shareholder.
5. The individual must obtain advice from a relevant independent adviser on the terms and effect of the written statement. The company is required to pay for that advice whether the individual accepts the job or not.
6. The individual cannot accept or agree to an employee shareholder job until 7 days have passed following receipt of the advice. The 7 days commence on the day after the advice has been received.
If the individual or the company do not undertake or comply with all 6 of these conditions, the individual will not be an employee shareholder.
So how do we fare on it
X = criteria NOT met
✓ - Criteria IS met
1.
X We have not agreed to be Employee Shareholders.
2.
X Not everyone will get £2000 shares - Part Timers will get shares based on a Pro-rata Basis.
3.
✓ Okay we won't be paying for them
4.
X No written statement about giving up rights - in fact we got a statement saying we wouldn't from the CWU and RM.
5.
X RM is not offering nor will they offer to pay for us to see a Financial Advisor.
6.
X As 5.
As all 6 have to be
✓for us to give up our rights to be an employee shareholder under the new legislation, and 5 of the 6 have failed its not going to apply for us on THIS share issue.